Payment Layer to Mifos X

Contents

Introduction

Mifos X is a system that supports as organization/ entity as it moves beyond basic collections of payments. It enables a fluid mix of collections and payments benefits that gives the entity freedom to manage different revenue and cost streams.

It has a number of unique capabilities that it can offer in the management of the OpenIMIS project and other entities that work with it.

From the initial architecture that has been shared by the openIMIS developer committee, the Mifos X system offers the following capabilities;

  • Premium Collection & Accounting Capabilities

  • Notification management capabilities

  • Claims Payment Management Capabilities

  • Cash disbursement capabilities

  • Pool funds Management capabilities.

The most important measure of success for an Insurance company/payer is successful collection of premiums and payments to suppliers for services rendered. The flexible architecture of Mifos X allows various ways of measuring this progress.

Mifos Architecture in the openIMIS deployment

Process Flows - Account Management / Crediting Accounts with Money

Process flows - Payments to Providers

Development

Mifos has no inbuilt payment capability. All current solutions involve building an interface or system that sits between it and banks/merchants/mobile network operators.

The de-facto payment gateway for Mifos is Mojaloop, (Mifos and Mojaloop – an End to End Open Source Architecture for Digital Financial Services – Mifos Initiative.)

Others are built by individuals and are only supported by the developer themselves and are

Given the high level of support and development, it is both efficient effective to implement Mifos Architecture when compared to Mifos Architecture 2 (Fig 1 as opposed to Fig 2 above).

Account Rules

Rules and policies that can be customized based on the products

1. Account Management

  • Newly created account will remain in-active until its approved

  • All Approved accounts  are considered active Accounts

  • Active accounts can be attached to multiple products (Products are Savings, Fixed deposit, loan, current)

  • Active accounts can be debited or Credited (However rules can be customised based on the account type)

  • Single account can be attached to Multiple dependents

  • Disabled accounts cannot transact. Need to be enabled 1st

2. Collections & Payments

  • All accounts within the same office can be treated as a pool account

  • All accounts within a group can also be treated as a pool account

  • You cannot debit or credit a pool account. Only individual accounts can be debited or credited

  • Account number must be provided for all transactions

  • Overdraws are allowed based on some set of rules which are pre-defined

3. Account Query

  • for account status

  • For account details

  • For account balance

  • statement of account

  • last transaction/activity

  • last activity

Example

Use Case

The following scenario and subsequent entries shows the accounting treatment for an insurance company:

  1. In January 2020, the Kinoti family takes a medical insurance cover for a total KShs 1 million, shared by the five family members.

  2. Maternity is capped at KShs 100,000, while optical capped at KShs 5,000 per instance but no dental.

  3. The cover costs the family KShs 30,000

  4. On 15 March 2020, their first born is admitted to hospital and discharged 5 days later, for an approved cost of KShs 79,650.

  5. On July 4, they are blessed with a new baby, they are discharged on July 10 at a cost of KShs 125,753.

  6. On October 23, Mr. Kinoti gets prescription glasses at a total cost of KShs 7,500. He paid the excess immediately

  7. In November, the second born gets dental work and braces at a cost of KShs 12,380.

  8. They cancel the cover on 1 December 2020.

Insurance Accounting Entries

The following shows the accounting treatments for an insurance company:

On inception of the cover

 

 

Account

Location

Amount

Amount

Dr

 

Insurance premium receivables

BS

30,000

 

 

Cr

Insurance premium income

P&L

 

30,000

On payment of the insurance premium

 

 

Account

Location

Amount

Amount

Dr

 

Bank

BS

30,000

 

 

Cr

Insurance premium receivables

 

 

30,000

On receipt of the first born's claim

 

 

Account

Location

Amount

Amount

Dr

 

Kinoti Family Shared Account

BS

79,650

 

 

Cr

Gertrude Children's Hospital

BS

 

79,650

On approval of the first born's claim

 

 

Account

Location

Amount

Amount

Dr

 

Medical claim

P&L

79,650

 

 

Dr

Kinoti Family Shared Account

BS

 

79,650

On payment of the first born's claim

 

 

Account

Location

Amount

Amount

Dr

 

Gertrude Children's Hospital

BS

79,650

 

 

Cr

Bank

BS

 

79,650

On receipt of the fourth born's birth claim

 

 

Account

Location

Amount

Amount

Dr

 

Kinoti Family Shared Account

BS

123,753

 

 

Cr

The Nairobi Hospital

BS

 

123,753

On approval of the fourth born's claim

 

 

Account

Location

Amount

Amount

Dr

 

Medical claim

P&L

100,000

 

 

Cr

Kinoti Family Shared Account

BS

 

100,000

On receipt of the excess claim on fourth born

 

 

Account

Location

Amount

Amount

Dr

 

Bank

BS

23,753

 

 

Cr

Kinoti Family Shared Account

BS

 

23,753

 

On payment of the fourth born's claim

 

 

Account

Location

Amount

Amount

Dr

 

Gertrude Children's Hospital

BS

123,753

 

 

Cr

Bank

BS

 

123,753

On receipt of Mr. Kinoti's claim

 

 

Account

Location

Amount

Amount

Dr

 

Kinoti Family Shared Account

BS

5,000

 

 

Cr

Kikuyu Eye Hospital

BS

 

5,000

On approval of Mr Kinoti's claim

 

 

Account

Location

Amount

Amount

Dr

 

Medical claim

P&L

5,000

 

 

Cr

Kinoti Family Shared Account

BS

 

5,000

On approval of Mr Kinoti's claim (No entries for the dental work done on the second born)

 

 

Account

Location

Amount

Amount

Dr

 

Kikuyu Eye Hospital

BS

5,000

 

 

Cr

Bank

BS

 

5,000

Depending of the terms and conditions of the insurance cover, if the cover is time dependent, a refund for a month is due

 

 

Account

Location

Amount

Amount

Dr

 

Insurance premium income

P&L

2,500

 

 

Cr

Insurance premium refundable

BS

 

2,500

On payment of refund

 

 

Account

Location

Amount

Amount

Dr

 

Insurance premium refundable

BS

 2,500

 

 

Cr

Bank

BS

 

2,500

If the cover is not shared but everyone has their own limits or cover, then an individual’s accounts are created. But the entries are largely the same.

Screenshots for the Mifos X Product Demo

Figure 7: Account entries

Challenges with Mifos

Mifos X is a system that was created with a deposit taking financial institutions in mind. As such, one of the challenges encountered is creating the grouping for the different consumers of medical covers. There are some limitations with the current implementation, as any client/group is set up to either be making deposits for either a savings or loan product. We shall only map the Scheme accounts and Payer accounts.

A second challenge is how the products exist in Mifos X. Normal insurance products usually expire annually without any carry over (other than refunds that or excesses that should be made good, but in either case, these can be handled off the within the actual accounting system). The medical insurance cover will be managed by OpenIMIS.

Mifos X is also not able to maintain information on the extent that beneficiaries have used their cover. This could cut across benefits limits for the various treatments offered ([Outpatient which can be split into general, dental, optical] and inpatient which can include maternity, surgeries]). OpenIMIS to manage this information and also the controls.

Integration with Mojaloop

https://github.com/openMF/payment-hub

Mifos vs MojaLoop – OpenIMIS Platform.

https://docs.mifos.org/user-manual/for-administrators-mifos-x-platform/initial-system-set-up
https://docs.mifos.org/user-manual/for-administrators-mifos-x-platform/accounting/accounts-linked-to-financial-activities
https://docs.mifos.org/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions

Mifos API Links

#

Category

Api Name

Description

Link

1

Account Management

Create Client

Creates an individual Account

https://demo.mifos.io/api-docs/apiLive.htm#clients

Activate Client

Activates and account

https://demo.mifos.io/api-docs/apiLive.htm#clients_activate

Close Client

De-activate an account

https://demo.mifos.io/api-docs/apiLive.htm#clients_close

Reactivate Client

Re-activates a disabled account

https://demo.mifos.io/api-docs/apiLive.htm#clients_reactivate

Client retrieve

Query account details

https://demo.mifos.io/api-docs/apiLive.htm#clients_retrieve

2

Account Transaction

Create a Savings

Create a account type (savings)

https://demo.mifos.io/api-docs/apiLive.htm#savingsaccounts_create

Create a Fixed deposit 

Create a account type (Fixed Deposit)

https://demo.mifos.io/api-docs/apiLive.htm#fdaccounts

Retrieve savings

Query for account type

https://demo.mifos.io/api-docs/apiLive.htm#savingsaccounts_retrieve

Withdrawal

Withdraw money from account

https://demo.mifos.io/api-docs/apiLive.htm#savingsaccounts_withdrawal

Deposit

deposit money into an account

https://demo.mifos.io/api-docs/apiLive.htm#savingsaccounts_deposit


Ressources

Dockerised version

GitHub - mobidevke/mifos-docker: Mifos X docker stack

Deployed version

https://openimis.atlassian.net/wiki/spaces/OP/pages/3221422105

The End Points

Client Management API

https://mifos.s1.openimis.org/fineract-provider/api/v1/clients

Funds Deposit & Withdrawal

https://mifos.s1.openimis.org/fineract-provider/api/v1/savingsaccounts

General Ledger Management

https://mifos.s1.openimis.org/fineract-provider/api/v1/glaccounts

OpenIMIS FHIR4 Mapping

FHIR R4 - Patient

FHIR

Mifos

Patient Details

Client Details

Identifier

externalId

active

active

name

firstname

telecom

Mobile number

gender

Gender

birthDate

Date of Birth

deceased

 

address

Address Line

maritalStatus

Client Classification

photo

Picture

 language

Language

generalPractitioner

 

managingOrganization

Office Details

link

Group ID

other

 

type

Group Name

contact

Family Details

relationship

Relationship

name

First name

telecom

Mobile Number

gender

Gender

organization

Profession

period

Date of Birth

 

is Dependent

 

Marital Status

 

Number of members

 

Number of dependents

 

No of Children

 

 

Account Details

Account Details

 

savingsProductId

 

activationDate

FHIR R4 - Organization

FHIR

Mifos

Organization

Group Details

identifier

externalId

active

active

type

 

name

Name

alias

 

telecom

Group Activation Data

address

Address Details

part of

 

contact

staff

purpose 

 

name

Staff Name

alias

 

telecom

Mobile number

address

Address Line

 

Group Members

 

clientMembers

 

activationDate

 

submittedOnDate

FHIR R4 - Claim-Payment

FHIR

Mifos

identifier

paymentTypeId

 status

transactionStatus

request

ClientAccount

response

 

created

transactionDate

provider

GroupID

payment

 

paymentDate

transactionDate

payee

accountNumber

recipient

Office ID

amount

transactionAmount

paymentStatus 

paymentStatus 

FHIR R4-Contribution

FHIR

Mifos

identifier

paymentTypeId

 status

transactionStatus

request

 

response

 

created

transactionDate

provider

savingsProductId

payment

transactionAmount

paymentDate

transactionDate

payee

accountNumber

recipient

accountNumber

amount

transactionAmount

paymentStatus 

 

 

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